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World 'cannot meet oil demand'

The world is mistakenly focusing on oil reserves when the problem is capacity to produce oil, M de Margerie said in an interview with The Times. Forecasters, such as the International Energy Agency (IEA), have failed to consider the speed at which new resources can be brought into production, he believes.

Interesting.

The IEA predicted in its World Energy Outlook that global demand for crude oil would reach 121 million barrels per day by 2030, of which more than half would be supplied by Opec. The agency predicted that more than $3 trillion (£1.72 trillion) of investment in wells, pipelines and refineries would be needed to raise output to such levels.

A couple of analysts have been pointing to renewed interest in tar sands and other pricey oil deposits as signs that the petroleum industry is going to continue to boom over the next few decades. If they are willing to invest heavily in such ventures, they expect the profit to keep rolling in from it.

We'll need oil for a good long while to come, because it is so handy in so many applications - but projects like this really make me hopeful that we can do more than just incinerate the lion share of it. Or at the very least get much more bang for our buck when we do use it as a fuel source.

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Comment

A couple of analysts have been pointing to renewed interest in tar sands and other pricey oil deposits as signs that the petroleum industry is going to continue to boom over the next few decades. If they are willing to invest heavily in such ventures, they expect the profit to keep rolling in from it.

Yes, I ws out in Edmonton a few years ago when oil prices were still low and they were basically in a depression. I was speaking about the state of their economy with someone who used to work in the oil and gas industry with told me that the viability of the tar sands is purely dependant on the cost of a barrel of oil. As soon as oil went above $25USD a barrel it is worth it to extract it from the sand.

Alberta is sitting on an estimated 1.7 trillion barrels of oil in the form of the tar sands. (Second largest after Saudi)

Certainly there is no hunting like the hunting of man and those who have hunted armed men long enough and liked it, never really care for anything else thereafter.
Ernest Hemingway, "On the Blue Water," Esquire, April 1936

Comment

There's an item in the May issue of Reason about this. (Check http://reason.com next month when the print issue gets migrated to online.) Apparently predictions of an oil crash have been going on since oil became a popular commodity, back in the 19th century.

Dude, seriously, WHAT handkerchief?

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